While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
Ralph Lauren (RL)
Market Cap: $22.72 billion
Originally founded as a necktie company, Ralph Lauren (NYSE: RL) is an iconic American fashion brand known for its classic and sophisticated style.
Why Do We Steer Clear of RL?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Poor expense management has led to an operating margin of 13.7% that is below the industry average
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 11.9% for the last two years
At $375.11 per share, Ralph Lauren trades at 22x forward P/E. Check out our free in-depth research report to learn more about why RL doesn’t pass our bar.
Two Stocks to Watch:
Omnicom Group (OMC)
Market Cap: $22.26 billion
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Does OMC Stand Out?
- 8.4% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
- Massive revenue base of $17.27 billion makes it a well-known name that influences purchasing decisions
- Free cash flow margin expanded by 7.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Omnicom Group is trading at $78.11 per share, or 7.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Expand Energy (EXE)
Market Cap: $23.16 billion
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Is EXE a Top Pick?
- Annual revenue growth of 20.3% over the past five years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $11.64 billion makes it a household name that influences purchasing decisions
- EBITDA margin improvement of 23.6 percentage points over the last five years demonstrates its ability to scale efficiently
Expand Energy’s stock price of $95.88 implies a valuation ratio of 10.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
